Hope on the horizon

Latest Central South Report from BDO suggests Hampshire businesses are pioneering in areas of growth for the UK economy

According to the third annual Central South Report produced by leading accountants and business advisers BDO LLP in Southampton, there is plenty of room for optimism in Hampshire’s commercial landscape, despite the effects of the recession showing in the latest figures. The report out today consolidates accounts of the region’s top 150 companies to provide a barometer of the economic climate for the region. Referred to as the Group, these companies employ over 315,000 people worldwide and make a pivotal contribution to the region’s economy with a combined turnover of £77.9 billion. The report also offers businesses of all sizes guidance on how to weather the current economic storm and emerge stronger in the future. In his Chairman’s statement for the report, Paul Lester, CEO of VT Group, comments that the figures in the report inevitably reflect the downturn in the economy but possibly not its full impact as the first six months of the current year are unlikely to show any improvement. Richard Pearce, CFO of Xyratex, has continued his role as Financial Director for the Group. Whilst raising concern about rising Operating Costs – and the impact of rising energy costs in particular - across the Group, the results showed evidence that companies are putting renewed emphasis on operating leaner with lower cost bases. This, he believes, gives room for optimism that the Group can manage itself through these difficult times. The report looks at a number of key topics including the mergers and acquisitions and investments made by the Group, the need for proactive management of tax charges and the potential for increased fraud during a recession. However, the underlying message throughout is the importance of strategic and forward planning to manage potential business risks, not only for the region’s top companies, but for all local businesses in surviving the difficult times ahead. Kim Hayward, Lead Partner from BDO in Southampton comments: “The toughest recession since records began officially ended in January 2010. We don’t expect the recovery to be swift, but Group companies are expressing cautious optimism. As a region, we are innovative and entrepreneurial and there is little doubt that we are well placed to take advantage of the growth industries of the future.” For a copy of the report please email Emma Wareham at BDO in Southampton: emma.wareham@bdo.co.uk or visit the website at www.bdo.co.uk/centralsouthreport

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